Oracle Corporation (ORCL) has been reporting strong numbers. Recently, the company reported Q4 FY26 numbers, which beat analyst estimates from a top-line and EPS perspective. At the same time, the company’s guidance topped estimates. It's, however, worth noting that ORCL stock corrected sharply and has been largely sideways in the last 52 weeks.
The reason is Oracle’s planned capital expenditure of $95 billion for FY27. To support the big investment plans, Oracle will be raising $40 billion in debt and equity. At the same time, Oracle has guided for gross margin compression as the company ramps up data center projects.